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How a step-up SIP works, and how much extra it earns

Updated 2026-11-13

Quick answer

A step-up SIP raises your monthly amount by a fixed percentage every year. Starting at ₹10,000 a month and raising it 10% a year for 10 years at 12%, you invest ₹19,12,491 and reach ₹33,74,326, against ₹23,23,391 for a flat SIP.

Steps

  1. Choose the starting monthly amount. Here it is ₹10,000.
  2. Choose how much to raise it each year. Here it is 10%, so year two is ₹11,000 and year three is ₹12,100.
  3. Choose the return you want to test and the years: 12% and 10.
  4. Enter the numbers in the step-up SIP calculator.
  5. Compare the result with a flat SIP, shown as the extra over a flat SIP.

What the step-up adds

A flat SIP of ₹10,000 for 10 years at 12% reaches ₹23,23,391 on ₹12,00,000 invested. Raise it 5% a year and you reach ₹27,86,942 on ₹15,09,347. Raise it 10% a year and you reach ₹33,74,326 on ₹19,12,491.

The 10% step-up ends ₹10,50,936 ahead of the flat SIP. Part of that is simply more money going in, and part is that the larger amounts of the later years also grow.

Why it suits most careers

Income usually rises through your working life, so a fixed amount that felt large in year one feels small in year ten. Linking the SIP to your raises keeps the share of income you save about the same, without a big jump in any one year.

Keep the step realistic

A 10% yearly increase compounds: by year ten the monthly amount is about 2.4 times the first. Pick a step you can actually afford, and remember that the calculation assumes a steady return, which real markets do not give.

Try it yourself

Common questions

What is a step-up SIP?

A SIP whose monthly amount rises by a fixed percentage every year, so your investing keeps pace with your income.

Is a step-up SIP better than a flat SIP?

It puts more money in over time, so with the same return it ends higher. It also needs a higher monthly commitment as the years go by.

What step-up should I choose?

One that matches your expected pay rises and that you can keep up. Five to ten percent is common in examples.

Does the calculator include tax or charges?

No. It shows the maths of a steady return only.

Also read: How to calculate SIP returns, with a worked example, SIP vs lumpsum: which suits you, with numbers